| Sponsor | Rep. Scott, David |
| Committee | Financial Services |
| Date | March 3, 2010 (111th Congress, 2nd Session) |
| Staff Contact | Daris Meeks |
The House is expected to consider H.R. 2554 on the House floor on Wednesday, March 3, 2010, under a motion to suspend the rules, requiring a two-thirds majority vote for passage. This legislation was introduced by Rep. David Scott (D-GA) on May 21, 2009.
H.R. 2554 would reestablish the National Association of Registered Agents and Brokers (NARAB) as a nonprofit corporation to prescribe, on a multi-State basis, licensing and insurance producer qualification requirements and conditions. The bill would authorize the NARAB to: (1) establish membership criteria, including a mandatory criminal background check for state-licensed insurance producers; and (2) deny membership to a State-licensed insurance producer on the basis of the criminal history information obtained. The bill would grant NARAB enforcement powers, including denial of membership to any State-licensed insurance producer for failure to meet membership criteria.
The bill would require NARAB to establish an office of consumer complaints, including a toll-free telephone number. It would authorize NARAB to coordinate with State insurance regulators to: (1) establish a central clearinghouse; and (2) establish a national database for the collection of regulatory information concerning the activities of insurance producers. The legislation would state that NARAB membership authorizes an insurance producer to engage in the business of insurance in any state for any lines of insurance specified in the producer's home state license, including claims adjustments and settlement, risk management, and specified insurance-related consulting activities. The State's would retain regulatory jurisdiction regarding consumer protection and market conduct, and the States would retain regulatory authority over: (1) licensing, supervision, disciplining, and setting of licensing fees for insurance producers; and (2) insurance-related consumer protection and unfair trade practices.
The Congressional Budget Office (CBO) has not yet produced a cost estimate for H.R. 2554.